Emergent BioSolutions Files 8-K on Exit Costs

TL;DR

Emergent BioSolutions is reporting on exit and disposal costs in their latest 8-K.

AI Summary

Emergent BioSolutions Inc. filed an 8-K on May 1, 2024, to report on cost-associated exit or disposal activities. The filing also includes Regulation FD disclosures and financial statements. The company is incorporated in Delaware and headquartered in Gaithersburg, Maryland.

Why It Matters

This filing indicates Emergent BioSolutions is undergoing restructuring or divesting certain operations, which could impact future financial performance and strategic direction.

Risk Assessment

Risk Level: medium — Filings related to exit or disposal activities can signal financial distress or significant strategic shifts, warranting closer investor scrutiny.

Key Players & Entities

• Emergent BioSolutions Inc. (company) — Registrant
• May 1, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• Gaithersburg, Maryland (location) — Principal executive offices

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share EBS New York Stock
• $80 million — in annualized savings of approximately $80 million when fully implemented. The Company es
• $18 million — imates that it will incur approximately $18 million to $21 million in charges in connection
• $21 million — will incur approximately $18 million to $21 million in charges in connection with the Restr

Filing Documents

• ebs-20240501.htm (8-K) — 32KB
• ebsnewtrelease.htm (EX-99.1) — 14KB
• image.jpg (GRAPHIC) — 7KB
• 0001367644-24-000058.txt ( ) — 187KB
• ebs-20240501.xsd (EX-101.SCH) — 2KB
• ebs-20240501_lab.xml (EX-101.LAB) — 22KB
• ebs-20240501_pre.xml (EX-101.PRE) — 13KB
• ebs-20240501_htm.xml (XML) — 3KB

05. Costs Associated with Exit or Disposal Activities

Item 2.05. Costs Associated with Exit or Disposal Activities. On May 1, 2024, Emergent BioSolutions Inc. (the "Company") announced an organizational restructuring plan (the "Restructuring Plan"). These strategic actions will lead to a reduction of the Company's current workforce by approximately 300 employees across all areas of the Company and the elimination of approximately 85 positions that are currently vacant, as well as the closure of the Company's Baltimore-Bayview Drug Substance manufacturing facility and Rockville, Maryland Drug Product facility. Decisions regarding the elimination of positions and the closure of manufacturing facilities are subject to local law and consultation requirements in certain countries, as well as the Company's business needs. In combination with other rationalizing initiatives, these actions are expected to result in annualized savings of approximately $80 million when fully implemented. The Company estimates that it will incur approximately $18 million to $21 million in charges in connection with the Restructuring Plan, which it expects to incur primarily in the second half of fiscal 2024. These charges consist primarily of cash charges related to severance, transition services, and estimated benefits cost. The estimates of the charges and expenditures that the Company expects to incur in connection with the Restructuring Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Restructuring Plan. Expected annualized savings attributable to the Restructuring Plan are also subject to a number of assumptions, and actual amounts may differ materially from estimates.

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. On May 1, 2024, the Company issued a press release disclosing the Restructuring Plan. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information contained in this Item 7.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Safe Harbor Statement This Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the expected timing for implementation of the Restructuring Plan, its total and cash cost, and our ability to achieve the objectives of the Restructuring Plan, including our future results and expected annualized savings, are forward-looking statements. The Company generally identifies forward-looking statements by using words like "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal," "intend," "may," "plan," "position," "possible," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements are based on the Company's current intentions, beliefs and expectations regarding future events based on information that is currently available. The Company cannot guarantee that any forward-looking statement will be accurate. Readers should realize that if underlying assumptions prove inaccurate or if known or unknown risks or uncertainties materialize, actual results could differ materially from the Company

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits . Exhibit No. Description 99.1 Press release issued by Emergent BioSolutions Inc. on May 1, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EMERGENT BIOSOLUTIONS INC. Dated: May 1, 2024 By: /s/ RICHARD S. LINDAHL Name: Richard S. Lindahl Title: Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR